Hatteras no longer building yachts?

Then too, selling the name doesn't necessarily result in a brand re-emergence. Could be someone like Dr. Trocki just gets yet another name -- to add to Egg Harbor, Buddy Davis, Silverton, etc. -- but doesn't actually build anything.

-Chris

We tried to buy our old company Cabo back multiple times and would love to get the name back. And unlike the name mentioned above, we would actually do something with it.

And you were not the only person to approach them on that subject. Just the other I'm aware of was planning on building on the East Coast instead of the West. They contacted Brunswick, then Versa, then White River. No discussing it, just solid "no."

Of course they aren't going to sell the name. Why would they open the door for a competitor? And selling a name with a great reputation would only make it that much easier for someone to compete with them. I get that it's frustrating that they won't sell it but from a business perspective it's understandable.

Actually the concept would be to license the name and collect royalties on MY's. Done all the time in other businesses.

And all those get you sued and you lose the case.

We were close twice on reacquiring Cabo. The first time was in 2012 or 13 and it involved the purchase of the Brunswick Swansboro facility which at the time was too much for my dad and I to take on. The second time we were close enough that we actually had shipping quotes on the molds, an agreed upon number and were a mere weeks from closing the deal. Then a management shift happened and all further conversations shifted into not only a hard no but a somewhat threatening no.

Most of the tools in our shop still say Cabo on them and on any given day you'll see an equal amount of Cabo shirts in the shop as Mag Bay shirts. We'd still love to get the name back but its no longer on the radar. Mag Bay is establishing itself where we wanted it to be and we're pushing forward with the same philosophies that made the original Cabo a success.

Yes, I get the concept. Sounds like someone perhaps feels threatened by the name and that the royalties would not offset perceived losses in direct business? That would be my guess but I'm not as close to these issues as you all are so I'm just spitballing here.

It seems the pattern was always to get close to deals and then they'd have a change of heart. Sometimes coming from the parent, sometimes a change of leadership, sometimes the stage of the moon it seems. Brunswick and Versa were both great at throwing curves.

Versa was close to a deal on Hatteras with another party and then it fell apart.

Brunswick and Versa are both the types to negotiate ad infinitum and then kill a deal over minutia. I doubt Versa would have ever closed a sale based on the profitability and future of Hatteras, itself. The sale happened because White River was willing to pay for the future profits of their existing brands being built at Hatteras. It's like buying a marina on the basis of marina plus the condominium tower you intend to build on the property.

The entire routine of taking months and months to negotiate a deal is ridiculous and a large part of why most deals never close. Often it seems the lawyers involved are not hoping to close the deal but just to find reasons not to do so. One of the few things I agree with Wayne Huizenga on was when he wanted a deal he gave his lawyers three days to wrap it up. That was it. He was spending millions and didn't want them haggling over nickels and dimes. I'm still a bit amazed Brunswick ever sold Hatteras as long as they tried. They tried to sell Sea Ray and failed to do so.

Received a note from someone who was in New Bern a few weeks ago...

They plan on building about a half dozen new sportfish boats this year and nothing was spoken about motoryachts. The facility is littered with little Makos everywhere. The new owner is refurbishing "NitWitts" with new motors, interior, paint, etc.

And if they build only 6 SF's, they're barely a serious builder. Shows where the attention will not be. 6 SF wasn't bad when building 3 or 4 MY's, but now that's the entire brand. I think they have plans to do more, new models, maybe even Cabo CC, when the Mako and Ranger markets slow, but then that will be a poor market for starting new models.

A lot of large sportfish owners have downsized to big center consoles. I think CCs sorta sabotaged the SF segment? Returning to topic... I'm sure there are many contributing factors, but in my opinion Hatteras plotted the wrong design course when they entered Euro coordinates. The teardrop windows on both the SF and MY lines made purists cry. The M70 and M90 motoryachts returned Hatt to their roots with great designs and good internal volume but demand for that size/range took a hit in recent years.

And it is the M75 and 95 for which dealers tried to submit orders, only to be told they weren't able to take any right now, and right now turned long. They easily had 18 months to 2 years more yachts to build, but then their capacity is quite full without MY's.

Maybe they just knew that they couldn’t make a profit on these MYs and foreign competition prevented them from pricing them where they should be.

for years US builders led by Hatteras ruled the 50-90’ MY market. Still to this day, you will find older hatteras MYs at most marinas. Heck, there are three including mine on my dock. But they have become a the minority in a market flooded by foreign boats. Again at my own dock, in the 50+ range there are 2 Sunseekers, 6 mutts, 2 beneteaus , 2 sea Rays. Plus a baia and a Pardo. Oh and a 110’ Lazzara on the tee head another long gone US builder

While not a scientific sample it is pretty representative of what I see at other marinas here and in the Bahamas.

where did Hatteras go wrong? I think that in the late 90s and 2000s they tried to maximize interior space but along the way forgot that most folks want be on the water to be outside. A 3’ balcony will not cut it. Then they tried euro styling but still with small aft decks. The 80 MY or the 2004-2013 era is a great boat but wasn’t enough. The follow up efforts (70/90) were very good too but by that time, probably due to low volume, they just could not build them at a competitive price and turn a profit while maintaining the expected quality level.

Now, you're back on target. They couldn't produce these boats at the prices needed. That is because their methods of production were well behind the industry, from build materials and design to the way they ran production. One look at their lines after seeing builders like Westport or even someone like Sea Ray or Sunseeker or many other boat builders, you would see the inefficiencies. One look at their factory and you saw it was not efficient. You also can't take 24 months to build a boat others do in 12 months and manage costs. I've heard numbers from third parties comparing their manhours in building Cabo vs. the hours building one before they purchased Cabo. This is part of what White River is addressing. Hatteras has never had productivity as efficient as the Mako and Ranger lines there now. Hatteras always prided themselves on weight, but being the heaviest boat isn't always the best either. Materials and methods must be addressed. Hatteras was so convinced they knew it all and were the best, they weren't paying attention.

There is good needed to be preserved from Hatteras, but a great need to move forward. I do believe White River intends to reintroduce MY's at some time. I'm just not convinced that time will ever come.

The deal with White River Marine fell apart at the last minute because Versa tried to throw a curveball in there, it was brought back to life a month later and then completed. Hatteras failed to go to the Euro models soon enough was their problem. They stuck with the old boxy look for too long. Also not enough focus on exterior features. Too many options and each boat essentially was a custom boat as far as interior went......woodwork color/type, flooring color, counter tops, sink fixtures, sinks etc. etc., this all extends production times. They are working hard to stream line the order sheet and make options now standard, plant efficiency, etc. etc.